Quote:
Originally Posted by smyles
Nope. They save on R&D, utilizing cheap labor (nothing wrong with that, btw) and simply copy thread patterns and/or design their own that may look cool, but is just that.
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Sometimes this is true. But for reputable small brands who partner with major tire manufacturers, they often get manufacturing co-op time and factory capacity. Some even share engineering, R&D, etc. It's an entire revenue stream for manufacturers across many industries, and even includes inter-brand cooperation with majors.
For example, Bridgestone makes XBrand 18 wheeler tires because they don't have the capability at their tire factory. They engineer, test, obtain DOT approvals, everything (which XBrand pays for). Then Bridgestone makes them, private labeled under XBrand brand. In turn, XBrand manufacturers a large percentage of Bridgestone's spare tire donuts and trailer tires, and some studdable snow tires, private labeled.
Manufacturing capacity, especially overseas, is very much a business decision for many brands. Optimizing when and where you make things is highly profitable. Sometimes much cheaper to pay your competition to make specific things, rather than invest millions in a new line or retooling. And others will reciprocate on your existing line capacity.